Stena wins FEED for Delta’s Vietnam LNG project
Norwegian company Stena Power & LNG Solutions to provide engineering and design (FEED) services for the liquefied natural gas (LNG) import terminal offered by Delta Energy Offshore in southern Vietnam
Singapore-based Delta will use Stena’s jet-less floating terminal and self-installing regasification platform as part of its LNG-to-power project, which could be Vietnam’s first private terminal. The project is located in Bac Lieu province in the Mekong Delta.
The start of development from LNG to electricity is scheduled for 2023 with an initial production capacity of 750 MW. Further 750 MW blocks will be added in each of the following three years. Therefore, Delta plans to import 2.5 million tonnes per year (t / yr) of LNG when the plant reaches full capacity of 3 GW around 2026.
âOur Jettyless LNG to power technology was created to meet the demand for more flexible LNG import and export terminals, such as the very exciting Bac Lieu LNG to Power project,â said Svein. Hellesmark, CTO at Stena Power & LNG Solutions in a statement announcing the contract award yesterday.
âThe floating terminal without jets and the Regas self-installation platform are key components of our LNG-to-power solution for Bac Lieu. They make it possible to position the LNG reception terminal at sea, and thus minimize the impact of the project on the land and on the coast of Bac Lieu. This is of great value to the province as the coast is home to shrimp farms, mangroves and salt beds, all of which are important to the regional economy and environment, âsaid Bobby Quintos, director. General of Delta Offshore Energy.
The import infrastructure will be located approximately 40 km off the Vietnamese coast. The FEED will include detailed model testing to ensure optimum performance in the environmental conditions of the Mekong Delta, Stena said.
Vietnam supports LNG-energy
The Vietnamese government is increasingly supporting LNG-energy projects backed by private investors, as the country faces a significant risk of chronic power shortages. Potentially online by 2023, Delta’s development could be Vietnam’s first private LNG-energy project.
Other private LNG-energy projects that are advancing include the 3.2 GW development of Energy Capital Vietnam in Quang Nam on the central coast.
Supported by the state, PetroVietnam Gas is building the country’s first LNG import terminal in the southern port of Thi Vai, which will have an initial capacity of 1 million t / year and is expected to start up by the end of 2022. The capacity could be tripled by 2023, as part of a potential second phase.
More than 10 LNG import projects have been proposed in Vietnam, but Delta and Thi Vai’s program are the only proposals that are realistically expected to be implemented by 2023-2024.
One of the main challenges facing the projects is the lack of clarity regarding LNG import regulations and complex procurement procedures involving various state-owned enterprises. This has slowed the progress of many of the proposed developments.
LNG-energy projects supported by the private sector, like that of Delta, appear to be advancing because the integrated approach avoids conflicts between public buyers and public sellers with different agendas, timelines and interests.
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